Re:Jack Welch has died
by vl on Monday March 02, 2020 @02:34PM
(#22467956)
Welch also invented corporate raiding by management. When he started, employees owned 0, when finished 31 percent of GE, with majority of 31 owned by management. This effectively transferred 1/3 of value from shareholders to management. Since then same thing happens with most other corporations.
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Re:Jack Welch has died
by technotony on Monday March 02, 2020 @03:03PM
(#22468310)
But at the same time enterprize value increased 40x. Paying 1/3 of the gains to management seems fair given the performance.
But it's more complex than this. Would it increase as much without paying 1/3? Were short-term gains optimized at the expense of sustainable business?
Didn't they start doing leveraged finacial product investments and stuff since it was heads their massive stock option incentives pay off, tails no big loss for them.
Was that 31percent purchased or seized?
Granted as stock options or restricted stock units.